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Shares in Inmarsat jump 16 percent on private equity approach

Shares in Inmarsat jump 16 percent on private equity approach
FILE PHOTO: A technician looks at a solar panel on the Inmarsat S-Band/Hellas-Sat 3 satellite in the clean room facilities of the Thales Alenia Space plant in Cannes, France, February 3, 2017. REUTERS/Eric Gaillard   -   Copyright  Eric Gaillard(Reuters)
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LONDON (Reuters) – Shares in Inmarsat Plc jumped 16 percent on Wednesday after the British satellite operator said it was in talks about a $3.3 billion (£2.5 billion) cash takeover approach from a private equity-led consortium.

The consortium, which initially included UK-based Apax Partners, U.S.-based Warburg Pincus and Canada Pension Plan Investment Board (CPPIB), was later also joined by Ontario Teachers’ Pension Plan Board, Inmarsat said. 

“The proposal remains under discussion”, Inmarsat said late on Tuesday.

The January 31 approach came six months after Inmarsat rebuffed a $3.25 billion bid from U.S. satellite group EchoStar.

Inmarsat, a long established provider of communication services to shipping, sees a growing opportunity to supply in-flight broadband services to commercial aircraft.

The consortium proposed a cash offer of $7.21, or 544 pence, for every Inmarsat share, a premium of 24 percent to Inmarsat’s Tuesday close of 437.8 pence and a 47 percent premium to the price on Jan. 31.

(Reporting by Paul Sandle and Justin George Varghese; editing by Kate Holton)

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